Page 8 | Exchanging tomorrow. Buyers just pulled out

Newhousename · 2023-08-14T20:29:58+00:00

It’s not about money apparently . They just went off the house. The night before. After five viewings and months of paperwork. &@£$**>%€ anyway. Trying to be practical. Does anyone have experience of those we buy any house type organisations? Please. Or any other thought that could help.

Morphle · 15/08/2023 12:41

Other way round for us. Our sellers pulled out and we’d spent over 4K in bank, surveyor and legal fees. Turns out they never had any serious intention of selling. Cunts.

really hope you find another genuine buyer soon

Sleepydoor · 15/08/2023 12:53

milveycrohn · 15/08/2023 12:22

"In Australia you pay a 10% deposit when the initial contracts are signed, but they are usually 'subject to a building inspection' and sometimes 'subject to finance'. "
In the UK (England and Wales) , you would also forfeit the deposit, usually 10% of the price) once contracts are signed. The difference is that the searches, survey and mortgage are done BEFORE the contracts are signed. After all, how can you sign a contract if you do not know any pitfalls associated with the house?
It is just in the OP, the contracts were not yet signed!
By signing, I mean exchange of contract, as you can sign a bit of peper, but until it is given to the otherside, it is not valid. We refer to this as exchange of contracts - usually done by the solicitor. Someone can pull out any time up to this point.
One should point out that a buyer would still forfeit the costs they have incurred in engaging a solicitor, searches, surveys, etc. It is actually worse if the seller pulls out, as the buyer will have incurred those costs for nothing, and it is not their fault.

"After all, how can you sign a contract if you do not know any pitfalls associated with the house?"

In Canada, you enter into an Agreement of Purchase and Sale that sets out all the terms and conditions. Conditions can be waived or if they fail to be met, they can void the contract. So, you enter into an agreement to buy the house for X amount and set out all the conditions that must be met for the sale to be completed. There are usually short timelines -- financing arranged and home inspection to be completed within days. If problems come up in the home inspection, the buyer can void the agreement at that point. But everything is governed by an enforceable written agreement to protect the buyer and the seller and avoid buyers messing sellers about for months and months and then trying to renegotiate the purchase price or walk away at the last second.

We also have title insurance to cover title defects and have a good land survey record system including deeds, mortgages and plans of survey for title.

CellophaneFlower · 15/08/2023 12:54

Morphle · 15/08/2023 12:41

Other way round for us. Our sellers pulled out and we’d spent over 4K in bank, surveyor and legal fees. Turns out they never had any serious intention of selling. Cunts.

really hope you find another genuine buyer soon

If I were ever to be a buyer and pulled out as I got cold feet about selling or similar, I would feel awful and compensate for all expenses incurred to soften the blow. It absolutely shouldn't come down to a gesture of goodwill though.

CellophaneFlower · 15/08/2023 12:55

Seller ffs!

marblemad · 15/08/2023 12:56

It is an unfortunate situation to be in however, house prices have dropped over the last couple of months and they have every right to change their minds. It is likely they found a better house with a price worth dropping out of your deal just before exchange.

Clefable · 15/08/2023 12:57

I'm so sorry, OP. I can't believe the English system is still so awful. I'm in Scotland but we sold my MIL's house in England a couple of years ago and I honestly couldn't believe the absurdity of some of it.

PleaseGiveMeBackMySummer · 15/08/2023 13:11

@NewhousenameI would be very careful and think very seriously about using one of those 'we buy any house for cash' type companies. Some years ago when DH and I were actually desperate to sell our house - maybe 12-13 years ago - we used one of these companies.

Our house was worth about £150,000, and we just couldn't sell it - it was on the market for about 10 months, and we dropped the price 3 times, to £137,000 eventually.

Had about a dozen viewings, though I am convinced some were not genuine and were just randoms sent by the estate agent. (We had complained about no viewings after 3-4 months this one time! Suddenly about 6 came in 3 weeks!)

Anyway, there's no way we were going to drop below about £133,000. There was £130,000 left on the mortgage, so we would have been in negative equity. Anyway, one of these kind of companies offered us £135,000 - and we thought 'okay let's do it. It's been on their market for nearly a year. Let's just do it.' (We were moving to another area and wanted to rent for a year or so before buying again.)

We got all the paperwork drawn up, paid the money for the solicitors, and put the first month's rent and a bond on a private let place a few days before completion. (£1500 in total!) PLUS the property agent's fee of £350! So almost £2,000!)

Then suddenly just out of the blue, the company rang us and announced they're only going to give us £90.000 for the house! 2 days before completion! We were gutted and devastated! We could not accept that. We need £130,000 to pay off the mortgage! So we dropped out! Everything was packed up and we were living out of boxes and suitcases!!! AND we had paid out first month's rent and bond to the new landlord, and the admin fee.

We were lucky really that the people who owned the private let house, had a couple of other people in reserve- so we got our money back and they had somebody else instead for the house. (Just lost the £350 admin fee!) It was another six months before we sold our house privately for £132,000. Just about broke even!

But yeah be careful because they will try and drop the price by 25-30% of what they originally offered when they think it's too late for you to pull out, and are in a position where you have got no choice other than to sell it.

EmmaEmerald · 15/08/2023 13:12

OP I'm really sorry
I'm pretty sure my buyer is about to pull put

I notice you say "They can buy the searches and exchange in a fortnight"

I didn't know searches could be bought? Wouldn't a new buyer want up to date searches?

Original poster

Newhousename · 15/08/2023 13:15

@EmmaEmerald searches are generic and valid for 6 months . unlike survey which is specific to the person who ordered it apparently.

OP posts:

EmmaEmerald · 15/08/2023 13:17

Newhousename · 15/08/2023 13:15

@EmmaEmerald searches are generic and valid for 6 months . unlike survey which is specific to the person who ordered it apparently.

thank you for mentioning that - potentially very useful.

I'll keep everything crossed for you.

Morphle · 15/08/2023 13:18

CellophaneFlower · 15/08/2023 12:54

If I were ever to be a buyer and pulled out as I got cold feet about selling or similar, I would feel awful and compensate for all expenses incurred to soften the blow. It absolutely shouldn't come down to a gesture of goodwill though.

Show quote history

Me too. We asked them to just pay the surveyors fee and they said no. They were very well off people. But most rich people are that way inclined. Very tempted to post a massive dog turd through their letterbox. We’ve bought now but it was shit as we also missed out on houses in the interim as we were focused on that one.

Mintie190 · 15/08/2023 13:23

marblemad · 15/08/2023 12:56

It is an unfortunate situation to be in however, house prices have dropped over the last couple of months and they have every right to change their minds. It is likely they found a better house with a price worth dropping out of your deal just before exchange.

And you think this makes it ok? So if prices had gone up in the short period between offer and exchange (typically 12 weeks) which is the more usual scenario historically, is it ok for sellers to pull out and relist for higher? There would be an endless cycle of game playing if everyone did this.

SpanielsMatter · 15/08/2023 13:39

I never bought a house in the UK and cannot understand why the system is as it is. There should be a change in the law to make the process: make an offer/ offer accepted, defined time for building reports, searches etc… negotiation if there are repairs, deposit of 30%, go unconditional ie all finance, conditions met and if you pull out you lose your deposit! 3 weeks later or by negotiation with vendor re moving dates, move in. My vendor was moving into retirement apartment and needed a little flexibility.

It is disgusting that whole chains of houses can topple because of chancers, I cannot see who benefits.

A campaign to move to the NZ system of house buying should be launched. I bought this house, moved in within 11 weeks. To be fair I had an amazing vendor ( who is now a good friend and regularly visits) who after deposit allowed a tree to be cut down in preparation for fencing.

UK system is bonkers and I’m so glad I was too poor at the time to buy in the UK.

DrySherry · 15/08/2023 13:49

marblemad · 15/08/2023 12:56

It is an unfortunate situation to be in however, house prices have dropped over the last couple of months and they have every right to change their minds. It is likely they found a better house with a price worth dropping out of your deal just before exchange.

Yes I also think this is what has happened

Swimbius · 15/08/2023 13:53

i bought this house, moved in within 11 weeks

That's not particularly quick is it? It's normally between 10 - 12 weeks from offer to completion in the UK. We've done it in 6.

frumpalertt · 15/08/2023 13:59

I'm so sorry, how terribly stressful for you. Utterly shit of them. So inconsiderate.

bladebladebla1 · 15/08/2023 14:18

That's fucking disgusting I'm so sorry

mondaytosunday · 15/08/2023 16:35

It is quick by recent standards @Swimbius! I'm a cash buyer and it's taken between five weeks and four months before.
The buyers will have lost more money, but agree this system is terrible and there should be a legally binding agreement as in the US.
I've had sellers pull out the very day of exchange!

Unexpectedlysinglemum · 15/08/2023 19:41

Newhousename · 15/08/2023 13:15

@EmmaEmerald searches are generic and valid for 6 months . unlike survey which is specific to the person who ordered it apparently.

We sold our survey to the new buyers for half price so perhaps your estate agent could organize that with both old and new buyers

binbangbong · 15/08/2023 21:29

NC because we tell everyone this story

Pulled out a couple of days before exchange. Went for a pre-exchange viewing because there had been a few months delay due to her negotiations on onward sale. (survey had been done, found various issues but we had decided to continue) She had sold all of her furniture so you could actually see the walls, floors etc. (Surveyors don't move items) Damp creeping up, electric sockets hanging out, skirting missing, cracks in conservatory glass that had been disguised with plants/ sofas.

We ran all of the taps and flushed all of the toilets (highly recommend, again surveyors don't unless you ask and pay for a plumbing survey.) A few moments later she came up and said that we had caused a flood - she hadn't used one of those toilets for 'eight years' and it turned out to be a broken macerator. She had punctured holes in the ceiling below to stop it collapsing completely. Her dog was lapping up the toilet water in the hall.

Together with the appalling survey, we just couldn't manage replacing it all to make it liveable. We were beyond negotiating as we felt that there would be many, many other undeclared serious issues.

Twiglets1 · 15/08/2023 22:21

binbangbong · 15/08/2023 21:29

NC because we tell everyone this story

Pulled out a couple of days before exchange. Went for a pre-exchange viewing because there had been a few months delay due to her negotiations on onward sale. (survey had been done, found various issues but we had decided to continue) She had sold all of her furniture so you could actually see the walls, floors etc. (Surveyors don't move items) Damp creeping up, electric sockets hanging out, skirting missing, cracks in conservatory glass that had been disguised with plants/ sofas.

We ran all of the taps and flushed all of the toilets (highly recommend, again surveyors don't unless you ask and pay for a plumbing survey.) A few moments later she came up and said that we had caused a flood - she hadn't used one of those toilets for 'eight years' and it turned out to be a broken macerator. She had punctured holes in the ceiling below to stop it collapsing completely. Her dog was lapping up the toilet water in the hall.

Together with the appalling survey, we just couldn't manage replacing it all to make it liveable. We were beyond negotiating as we felt that there would be many, many other undeclared serious issues.

I would say in your case, it's completely understandable that you pulled out and I probably would have done the same thing.

KievLoverTwo · 15/08/2023 22:52

Unexpectedlysinglemum · 15/08/2023 19:41

We sold our survey to the new buyers for half price so perhaps your estate agent could organize that with both old and new buyers

Show quote history

The trouble with buying someone else's survey is the surveying firm have no liability towards the new buyers if they miss something serious.

Moneynewpence · 15/08/2023 23:13

Clefable · 15/08/2023 12:57

I'm so sorry, OP. I can't believe the English system is still so awful. I'm in Scotland but we sold my MIL's house in England a couple of years ago and I honestly couldn't believe the absurdity of some of it.

The Scottish system is hardly perfect. We're selling a Scottish flat and there are all kinds of legal shenanigans not to mention the MENTAL system of flat numbering

midsomermurderess · 15/08/2023 23:29

If a survey throws up an issue, contract law would apply. Eg no consensus in idem, the contract can't reasonably be fulfilled. It would have to be a significant issue.

midsomermurderess · 15/08/2023 23:39

The system in Scotland isn't that different to England nowadays. Properties are sold subject to conclusion of missives, ie the signing of the contract, and that is usually pretty close to settlement. You can withdraw penalty-free up to conclusion of missives. Solicitors take a dim view of it, but it can be done. Sales do through quicker here though, I think the system of home reports helps.